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Jurgen Klopp believes that his Borussia Dortmund side have taken "a big step forward" after its 1-1 Champions League draw away at Manchester City on Wednesday night.

The German champion turned in an impressive performance but was denied an invaluable three points when Mario Balotelli's last-gasp spot kick cancelled out Marco Reus' strike.

In his post-match conference, the former Mainz coach expressed his disappointment at failing to hold on to the lead but feels that his side are showing signs of real progress in this year's competition.

"I am a little bit annoyed about this result, even though City deserved a draw as well. You cannot keep out the incredible talent of Manchester City for 90 minutes," he said. "We had them pinned down, so of course you'd like to take the three points in that case. We had countless chances, despite being the away team. However, we can build on this performance, as we were very disciplined tactically. It was a big step forward for us."

Dortmund hs gained four points from its opening two matches but faces a stern test when it hosts Real Madrid on Wednesday, Oct. 24.

Last season, Dortmund finished bottom of its group, but Klopp will be hoping to reach the knockout stages this time around.